joanmcq Posted March 27 Report Share Posted March 27 I am trying to figure out how to enter a1099-Int that has both accrued interest paid and accrued market discount on US government bonds. Right now I have an adjustment to box 3b (interest on Treasury obligations) for the accrued interest which subtracts it from the interest total on Sch B. But I also have a bond which was sold (also US gov) with accrued market discount. Should I just make another interest input for the accrued market discount (which I believe should be added to the interest income) or is there some other way to present this? Quote Link to comment Share on other sites More sharing options...
Slippery Pencil Posted March 29 Report Share Posted March 29 Did you figure anything out? I have a I have a 1099B with accrued market discount. The adjustment on 8949 removes it from the gain, but I can't see how to get it on the Sch B unless I make a manual entry on a 1099INT. Quote Link to comment Share on other sites More sharing options...
BrewOne Posted March 29 Report Share Posted March 29 I've had to dummy up a 1099INT before. One fallback on OID: there is a de minimis rule (Pub 1212) if the OID is less than 1/4 of 1% of the instrument. The pub gives an example of a $1,000 instrument with OID of $20--this is not reportable as it is less than the $25 threshold for a $1,000 instrument. There is also information in Pub 550. 1 Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 29 Report Share Posted March 29 I do the same thing; dummy up a 1099 INT. I don't have any other ideas. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 29 Report Share Posted March 29 Just combine the two items and use the Other code. 1 Quote Link to comment Share on other sites More sharing options...
joanmcq Posted April 1 Author Report Share Posted April 1 I dummied up a 1099-INT. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted April 1 Report Share Posted April 1 6 hours ago, joanmcq said: I dummied up a 1099-INT. Then you must have split the interest amount into two separate 1099-INT forms, because the adjustments have to be less than or equal to the interest amount. I've combined multiple adjustments into one number routinely over the years, and never had a problem. 1 Quote Link to comment Share on other sites More sharing options...
Slippery Pencil Posted April 2 Report Share Posted April 2 10 hours ago, Abby Normal said: Then you must have split the interest amount into two separate 1099-INT forms, This isn't an adjustment listed on a 1099-INT, there's nothing to combine. It's accrued interest on a 1099B that needs to be deducted from the gain and put on Sch B as interest income. 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted April 2 Report Share Posted April 2 How does one verify that the amount isn't already on the 1099INT? I would assume that it is. 2 Quote Link to comment Share on other sites More sharing options...
joanmcq Posted April 3 Author Report Share Posted April 3 It's not. Quote Link to comment Share on other sites More sharing options...
Slippery Pencil Posted April 3 Report Share Posted April 3 I'm pretty sure that's not how market discount works, though I could be wrong. But on the consolidated 1099 I have, the interest income for each cusip is less than the market discount for that cusip. 1 Quote Link to comment Share on other sites More sharing options...
joanmcq Posted April 3 Author Report Share Posted April 3 Yes, I just got one where the market discount far exceeds the amount of reported interest. Quote Link to comment Share on other sites More sharing options...
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